With the Facebook iPhone app, there are 6 screens a user has to go through before a user can actually take a picture. With Instagram, there is one.

If not for today's acquisition, this would have been a long term problem for Facebook.

According to Mary Meeker, sometime in the middle of 2013, there will be more people on the Internet via their mobile devices than desktops.

If Facebook didn't figure this problem out, it might have gone the way of Friendster. Friendster lost to Facebook because users found they could do what they wanted to do with much more speed and simplicity on Facebook than they could on Friendster.